21) Promissory notes issued by the federal government when it borrows money are known as A) Treasury shares. B) Treasury stocks. C) Treasury bonds. D) none of the above   22) A promissory note issued by a corporation when it borrows money is a A) share. B) corporate bond. C) corporate dividend. D) stock.   23) Dividends are A) government profits distributed among bondholders. […]

    31) The unemployment rate is the A) number of unemployed people. B) percentage of the population that does not have a job. C) percentage of the working-age population that does not have a job. D) percentage of the labor force that does not have a job. E) percentage of employed people that does not have a job.   32) The unemployment rate measures […]

    41.Assume there are three hardware stores in the market for hammers and that all three markets produce a single, standard model hammer. House Depot is an enormous mass producer of hammers and can offer a hammer for sale for a minimum of $7. Lace Hardware is a franchise and can offer the hammer for sale for a minimum of $10. Bob’s Hardware store […]

  81.Which of the following best supports the economic transformation from a centrally planned command economy to a market-based economy?   A. Reserving heavy industry for state-owned enterprises B. Having a strict industrial licensing system C. Restricting the imports of raw materials and several industrial goods D. Charging high rates of income tax and corporate tax E. Transferring the ownership of state property into the hands of private individuals 82.The _____ […]

    11) Suppose a decrease in the supply of bottled water results in a decrease in revenue. This indicates that A) the demand for bottled water is inelastic in the price range considered. B) the demand for bottled water is elastic in the price range considered. C) the supply of bottled water is inelastic in the price range considered. D) the supply of bottled […]

    11) In the market for automobile insurance, adverse selection implies that A) those who are insured might take greater risks. B) those who are uninsured might take greater risks. C) private information cannot be successfully screened. D) insured and uninsured alike will take greater risks. E) drivers with greater risks are more likely to buy insurance.   12) In the market for automobile […]

  Introduction 1) ________ is the economic framework that describes an individual’s optimal actions in settings where interactions with others determine her well-being. A) Game theory B) Econometrics C) The Keynesian Cross D) The IS-LM model 2) Game theory is the study of ________. A) policy analysis B) strategic interactions C) program evaluation D) irrational decision making 3) Which branch of study helps in economic […]

  11) If the tax multiplier is -1.5 and a $200 billion tax increase is implemented, what is the change in GDP, holding everything else constant?  (Assume the price level stays constant.) A) a $300 billion decrease in GDP B) a $300 billion increase in GDP C) a $30 billion increase in GDP D) a $133.33 billion decrease in GDP E) a $133.33 billion increase […]

    11) A point on the demand curve shows the A) price and the corresponding quantity demanded. B) marginal benefit from that unit. C) marginal cost to the seller of producing the unit. D) Both answers A and B are correct. E) Both answers A and C are correct.   12) A point on the demand curve shows the A) minimum price that people […]

  5.3  From the Buyer’s Problem to the Demand Curve   1) Willingness to pay: A) is the lowest price that a buyer is willing and able to pay for a unit of good. B) is the highest price that a buyer is willing and able to pay for a unit of good. C) is equal to the price of the lowest-priced goods in a […]